Tower Semiconductor Wobbles Amid China Report of Intel Deal

Tower Semiconductor (NASDAQ: TSEM), Israeli manufacturer of analog integrated circuits, rose as much as 2.4% and has pared its gain to 1% amid a report about China’s antitrust regulator s review of Intel’s (NASDAQ: INTC) planned purchase. Progress has appeared to be made with China’s antitrust authority, although further progress will depend on US-China trade policy specific to US export control measures.

Specifically, changes to the U.S. Export Administration Regulations (EAR), 15 C. F.R. Part 730 et seq., which includes items exported from the United States, items produced in the United States, foreign-produced items incorporating certain controlled U.S. content, and items produced entirely outside the United States that are the direct product of certain U.S. technology or software or produced from equipment that itself is the direct product of certain U.S technology or software.

At a TD Cowen conference in early June in response to a question about the Tower Semi (TSEM) deal Intel CF0 David Zinsner said, “If, for reasons out of our control, that doesn’t happen, though I think we have all the elements and Pat has done a good job shifting that team’s focus to be more customer oriented in a way that we can be successful regardless.”

The Intel CFO comments come after Intel CEO Pat Gelsinger said in late April that the semiconductor giant was making “progress” with Chinese regulators as far as its planned $5.4 billion acquisition of Tower Semi after meetings in China.

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